What is the significance of schedule A, B, C, D enterprises with respect to central public sector enterprises?

First Published: May 2, 2010 | Last Updated:May 2, 2010

The most popular categories of Central Public Sector Enterprises are Navratna, Miniratna (Category I & II) CPSEs based upon the powers vested in their Board of Directors. A new category, Maharatna has been recently added to this group. Other groupings are based upon profit making, loss making & sick units etc.

Apart from this, the Department of Public Enterprises (DPE) formulates policy guidelines on the Board structure of Public Enterprises and advises on the shape and size of organizational structure of CPSEs. The public enterprises are categorized in four Schedules namely ‘A’, ‘B’, ‘C’ and ‘D’ based on various quantitative, qualitative and other factors.

Quantitative factors: Quantitative factors include the investment, capital employed, net sales, profit before tax, number of employees, number of units and value added per employee.

Qualitative Factors: national importance, complexities of problems, level of technology, prospects for expansion and diversification of activities and competition from other sectors, strategic importance of the corporation etc.

How Schedules affect?The pay scales of Chief Executives and full time Functional Directors in CPSEs are determined as per the schedule of the concerned enterprise. For example the Chief Executives of Schedules CPSEs is Rs. 80,000-1, 25000. The new pay scales start from Rs. 12,600-32,500 (for E-0 grade). These are revised rates. The revised pay scales are based upon the recommendations of 2nd Pay Revision Committee.

What is Second Pay Revision Committee (2nd PRC)?Second Pay Revision Committee also known as 2nd PRC was headed by Justice M. Jagannadha Rao, a retired Supreme Court judge. The Government of India had constituted this committee via resolution (30.11.06) to recommend revision of scales of pay of Board level and below Board level executives (including non-unionized supervisors) of CPSEs following Industrial Dearness Allowance (IDA) pattern scales of pay w.e.f. 01.01.2007.

Based upon recommendation of this committee , the government had issued order on 26.11.08 and 09.02.09.

How Many Companies have been categorized?As on 31.3.2009, there were 247 CPSEs in the country. Out of the 247 CPSEs, there are 58 Schedule ‘A’, 70 CPSEs in Schedule ‘B’, 46 CPSEs in Schedule ‘C’ and 6 CPSEs Schedule ‘D’. The rest are covered under the uncategorized category.